LPXD(SZ:002114)2024-03-29 16:00Financial Performance - The company's operating revenue for 2023 was ¥1,538,010,629.85, a decrease of 21.88% compared to ¥1,968,690,824.27 in 2022[25]. - The net profit attributable to shareholders was -¥209,131,002.24, an improvement of 11.56% from -¥236,473,503.08 in the previous year[25]. - The cash flow from operating activities showed a significant increase of 386.35%, reaching ¥260,151,343.34 compared to -¥90,852,390.29 in 2022[25]. - The total assets at the end of 2023 were ¥2,417,781,683.06, reflecting a decrease of 3.08% from ¥2,494,667,926.74 at the end of 2022[25]. - The net assets attributable to shareholders decreased by 16.45% to ¥1,031,780,117.78 from ¥1,234,915,420.42 in 2022[25]. - The basic and diluted earnings per share for 2023 were both -¥0.65, an improvement of 10.96% from -¥0.73 in 2022[25]. - The company reported a negative net profit for the last three accounting years, indicating ongoing uncertainty regarding its ability to continue as a going concern[25]. - The company achieved a total revenue of CNY 153,801.06 million in 2023, a decrease of 21.88% compared to CNY 196,869.08 million in the previous year, primarily due to lower sales prices and volumes of zinc products[53]. - The company's operating costs were CNY 160,796.20 million, down 21.04% from CNY 203,655.30 million in the previous year, attributed to a decrease in the prices of raw materials[53]. - The company reported other income of CNY 1,057.99 million, an increase of 339.29% from CNY 240.84 million in the previous year, mainly due to tax benefits from national policies[53]. Business Operations - The main business includes the production and sale of zinc ingots, copper ingots, zinc concentrate, lead concentrate, and other related products[23]. - The company has undergone several changes in its business scope, including the addition of lead-zinc mining and processing[23]. - The company has a diversified production model that integrates mining, selection, smelting, and resource recycling, alongside electricity sales[45]. - The company’s sales model includes direct sales through spot, pricing, and futures delivery methods, ensuring fair procurement prices for raw materials[46]. - The company has a production capacity of 120,000 tons/year for zinc ingots and 140,000 tons/year for sulfuric acid, with a raw material self-sufficiency rate of approximately 25%-30%[47]. - The company has introduced a new rapeseed oil product through its wholly-owned subsidiary, utilizing direct factory and online sales channels[46]. Market and Industry Trends - The lead-zinc industry in China is expected to continue growing, driven by demand from new energy vehicles and renewable energy sectors[35]. - In 2023, zinc prices exhibited an L-shaped trend, with a significant decline of 25% in Q2 due to increased supply and weakened demand[38]. - The domestic demand for lead and zinc is expected to grow at an annual rate of 5.6% and 5.3% respectively until 2030, driven by the rapid expansion of the automotive market and infrastructure needs[40]. Risk Management - The company has faced risks related to metal price fluctuations, safety, and environmental management[5]. - The company emphasizes the importance of risk awareness regarding future plans and development strategies[5]. - Zinc price volatility poses a risk to profitability; the company plans to enhance cost control and engage in hedging activities to mitigate this risk[102]. - The current self-sufficiency rate for raw materials is approximately 25%-30%, with reliance on external markets for most materials, which could increase production costs if prices rise[101]. - Safety and environmental risks are present due to mining activities, and the company is committed to improving safety protocols and environmental standards[103]. Environmental Management - The company is focused on enhancing its environmental management practices in line with national and provincial regulations[184]. - The total pollutant emissions for 2023 are as follows: particulate matter 62.433 tons/year, sulfur dioxide 306.407 tons/year, nitrogen oxides 153.6014 tons/year, and mercury and its compounds 0.03088 tons/year[186]. - The company adheres to the emission limits set by the pollution discharge permit, with all monitored pollutants within the allowed limits[186]. - The company has implemented a comprehensive wastewater treatment system with a capacity of 2400 m³/d and a secondary treatment facility of 2000 m³/d, ensuring all treated wastewater is reused in production[195]. - The company has established a solid waste pollution prevention facility that effectively disposes of all generated solid waste, with hazardous waste storage complying with GB18597 standards[195]. Corporate Governance - The company’s financial report is guaranteed to be true, accurate, and complete by its management team[5]. - The company maintains strict compliance with information disclosure regulations, ensuring accurate and timely communication with investors[116]. - The board of directors consists of 8 members, with independent directors making up one-third of the board, ensuring compliance with governance standards[111]. - The company has established a performance evaluation and incentive mechanism for management to attract and retain talent[114]. - The company has established a complete independent financial management system, ensuring no interference from controlling shareholders[119]. Research and Development - Research and development expenses amounted to CNY 200.41 million, a significant reduction of 54.41% from CNY 439.64 million in the previous year, due to the reclassification of some R&D costs to product costs[53]. - The company has been authorized 8 utility model patents and has filed 11 patents during the reporting period, including 1 invention patent and 10 utility model patents[51]. - The company is focused on improving zinc recovery rates and reducing environmental risks through various technical research projects[70]. Future Plans - The company aims to focus on innovation and digitalization to enhance resource utilization and meet the growing demand in sectors like new energy and information technology[36]. - The company aims to develop low-cost lead-zinc energy storage materials to support the "dual carbon" goals of society[36]. - The company plans to enhance resource reserves and improve product recovery rates and quality, focusing on becoming a leading quality zinc enterprise in China[98]. - The company intends to enhance its internal control management and promote cost-saving measures to improve overall economic efficiency[100]. - The company aims to strengthen its marketing capabilities and expand its market competitiveness through the establishment of Yunnan Chiwei Trading Co., Ltd.[96].